Agenda item

2019-2020 Capital Programme

The Committee considered this report that set
out the proposed capital programme for 2019/20. Members noted that
the programme primarily related to the assets which were held or
used by the Council to operate or support the services provided to
Somerset residents and included such assets as Schools and
Highways. It was noted that capital expenditure involved the
acquisition, creation or enhancement of fixed assets with a
long-term value to the Council. It did not therefore support the
day-to-day running costs of Council services which were met from
the Revenue Budget.

It was reported that previously capital
programme approvals had been given on an annual basis with only
consideration given to future years. However, some larger projects,
lasting more than one year, would require further approvals to
complete them. It was now proposed to set out the approvals for the
anticipated Capital Programme up to 2022/23 and this would allow
for better project planning of whole schemes and enable
commissioners to procure under best value frameworks.

Attention turned to the ‘Schools basic
need programme’ and it was noted that in 2018/19, the Council
approved a programme to provide additional schools basic need
places over four years. This was in part funded by up to
£120m of borrowing. A further investment programme was
proposed for 2019/20 and the subsequent three years, but this has
now been reviewed in the light of the financial pressures on the
Council.

It was noted that the proposed schools
programme for 2019/20 and beyond would be based on available grant,
S106 contributions and the existing borrowing approval given in
February and May 2018. The programme had been designed to meet the
identified needs up to 2021 and appendix B of the report showed the
basic need requirements that funding sought to fulfil.

In response to a question it was stated that
the schools and number of places and where they would be needed in
Somerset between now and 2021 had been estimated having taken
account a wide range of information and would be subject to change
as the programme developed over the next few years. Looking ahead
Members heard that the Council would continue to seek further
funding to support the addition of school places and avoid the
requirement for borrowing.